RD192 - Virginia Small Business Financing Authority Management’s Discussion and Analysis and Basic Financial Statements and Supplementary Information for the Years Ending June 30, 2011 and 2010


Executive Summary:
This section of the Virginia Small Business Financing Authority’s (the “Authority”) annual financial report presents management’s discussion and analysis of the Authority’s financial performance during the fiscal years that ended June 30, 2011 and 2010. Please read it in conjunction with the Authority’s financial statements, which follow this section. The annual financial report consists of three parts, management’s discussion and analysis, the footnotes and the basic financial statements.

FINANCIAL HIGHLIGHTS

The following information represents a comparative analysis of key financial aspects of the Authority’s operations between the years ended June 30, 2011 and June 30, 2010.

• Cash and investments increased $776K (10%).

• Cash not with the Treasurer increased more than $1M (715%).

• Restricted assets associated with the CAP programs decreased $572K (-32%).

• Charges for service income increased $222K (46%).

• Charges for non-personnel expenses increased $35K (233%).

• CAP matching fees were up $12K (16%).

• Charge-offs were limited to $29K (-94%).

• Interest on cash decreased $81K (-39%).

• Interest earned on cash balances decreased $54K (-21%)

• Transferred $200K from VSBFA to VCAP to keep the program operational.

• Received $1M from GA for VSBFA loan programs

• Allowance for bad debts increased $27K (5% of notes receivable outstanding).

Primary factors that contributed to these changes were as follows:

• More payment on loans than loans funded.

• Cash in bank was significant due to large outstanding check.

• Some sizable 501C3 bonds had their first annual fee billing.

• Continued claims on CAP reserves.